home / skills / jst-well-dan / skill-box / excel-lbo-modeler
This skill helps you build Excel LBO models with debt schedules and IRR analysis to evaluate PE returns and exit scenarios.
npx playbooks add skill jst-well-dan/skill-box --skill excel-lbo-modelerReview the files below or copy the command above to add this skill to your agents.
---
name: excel-lbo-modeler
description: |
Build leveraged buyout (LBO) models in Excel with debt schedules and IRR analysis.
Use when structuring LBO transactions or analyzing PE returns.
Trigger with phrases like 'excel lbo', 'build lbo model', 'calculate pe returns'.
allowed-tools: Read, Write, Edit, Grep, Glob, Bash(cmd:*)
version: 1.0.0
author: Jeremy Longshore <[email protected]>
license: MIT
---
# Excel LBO Modeler
## Overview
Creates leveraged buyout models with debt structuring, amortization schedules, and sponsor returns analysis for private equity transactions.
## Prerequisites
- Excel or compatible spreadsheet software
- Target company financial data
- Debt term sheet parameters
- Entry/exit multiple assumptions
## Instructions
1. Set up transaction structure (purchase price, debt/equity split)
2. Build debt schedules for each tranche (senior, mezzanine, etc.)
3. Create operating projections with debt service
4. Calculate cash flow available for debt paydown
5. Model exit scenarios and calculate IRR/MOIC
## Output
- Complete LBO model with sources & uses, debt schedules, and returns
- IRR and MOIC at various exit multiples and years
- Sensitivity tables for entry/exit multiple and leverage
## Error Handling
| Error | Cause | Solution |
|-------|-------|----------|
| Negative cash flow | Debt service exceeds EBITDA | Reduce leverage or restructure debt terms |
| IRR #NUM! | No valid solution | Check exit value exceeds equity contribution |
| Circular reference | Cash sweep tied to interest | Enable iterative calculation |
## Examples
**Example: Mid-Market LBO**
Request: "Build an LBO model for a $100M EBITDA company at 8x entry"
Result: 60% senior / 40% equity structure, 5-year model, IRR analysis at 7x-10x exits
**Example: Add-On Acquisition**
Request: "Model a bolt-on acquisition with synergies"
Result: Integrated model with synergy phase-in and accretion analysis
## Resources
- [Macabacus LBO Modeling](https://macabacus.com/)
- [WSO PE Interview Prep](https://www.wallstreetoasis.com/)
- `{baseDir}/references/lbo-formulas.md` for debt schedule templates
This skill builds full leveraged buyout (LBO) models in Excel, including sources & uses, tranche-level debt schedules, and sponsor return calculations. It helps structure transactions, project operating cash flows with debt service, and produce IRR and MOIC outputs across exit scenarios. The skill is designed for private equity analysts and deal teams who need repeatable, auditable LBO workbooks.
Provide target company financials, debt term sheet parameters, and entry/exit assumptions; the tool constructs a transaction setup and allocates debt and equity. It creates amortization and interest schedules for each tranche, integrates operating projections to compute cash available for debt paydown, and models exit proceeds to calculate IRR and multiple of invested capital. Sensitivity tables and scenario runs show returns by exit multiple, holding period, and leverage.
What inputs are required to run a model?
Historical and projected P&L/EBITDA, transaction purchase price, debt tranche terms (rates, amortization, fees), and entry/exit multiple assumptions.
How do I handle circular references from cash sweeps?
Enable iterative calculation in Excel or isolate the sweep in a separate iterative block to prevent full-model circularity; document the approach clearly.
What outputs does the model produce?
Sources & uses, staged debt schedules, cash flow available for debt paydown, sponsor IRR and MOIC, and sensitivity tables by exit multiple and hold period.